Daley Seeks Pay Savings

Faced with lackluster tax collections and over budget on snow removal, Chicago Mayor Richard Daley last week announced a series of measures aimed at saving $20 million in the 2008 budget.

The moves come despite an added $275 million expected from a series of tax and fee increases, including a property tax increase, passed as part of the $6 billion 2008 budget.

“Even with our responsible projections for the 2008 budget, because the nation’s economy is bordering on a recession and because of the deepening housing foreclosure crisis, we’re on softer ground economically and in terms of our revenues this year. In addition, the harsh winter weather has forced greater spending,” Daley said.

The measures included ordering a hiring freeze for all but public safety, other essential jobs, and revenue-generating positions to achieve $11 million in savings and a 3% across-the-board cut in personnel costs to save $5 million. The remaining savings would come from a suspension of overtime for non-safety workers, the renegotiation of some vendor contracts, the suspension of all non-critical out-of-town travel, and a request for management-level employees to take unpaid furlough days.

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